LYC 0.66% $6.06 lynas rare earths limited

lynas price calculator

  1. 805 Posts.
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    I have updated the Lynas Price Calculator with more conservative forward projections in line with:
    - potential delays in production
    - lower industry P/E ratios
    - lower forward price projections relative to current prices

    Even with the more conservative projections including:
    - no production in Q1 and Q2
    - 50% production in Q3
    - 100% production in Q4
    I still end up with a share price of $5.19 based on 2011/12 production

    Of course the whole Lynas world revolves around approval to proceed.

    Whilst i am positive with regard to future price potential I personally only have 25% of my original holding in at the moment - with cash ready to go.

    Must say it worries me a tad where some have 100% of their holdings already in. When it goes either way it will change price rapidly, but IMO, the vertical rise will be catchable whereas a vertical fall will be far more severe and difficult to deal with. I think it will be approved but with a few caveats and delays.

    Bottom Line: if approved the earning potential will make this a very healthy stock to hold for at least the next 2 years. The calculator is provided as a "guide" reflecting my projections BUT you must do your own research AND manage your risk
 
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